Front Matter
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund

Abstract

The CIS-7 Initiative was launched in 2002 and endorsed by ministers from the CIS-7 and donor countries, with the objective of promoting poverty reduction, economic growth, and debt sustainability among the seven poorest countries of the Commonwealth of Independent States (CIS). This volume draws from the follow-up conference held in Lucerne, Switzerland, in January 2003. The objective of this conference was to achieve an understanding of the development agenda in the seven countries and the key policy measures to be taken by the governments and donors to improve future prospects for the countries’ populations.

Cataloging-in-Publication Data

The low-income countries of the Commonwealth of Independent States : progress and challenges in transition/edited by Clinton R. Shiells and Sarosh Sattar—Washington, D.C.: International Monetary Fund: World Bank, 2004.

  • p. cm.

Includes bibliographical references.

ISBN 1-58906-321-X

1. Former Soviet republics—Economic conditions. 2. Poverty—Former Soviet republics.

3. Former Soviet republics—Commerce. 4. Expenditures, Public—Former Soviet republics.

I. Shiells, Clinton R. II. Sattar, Sarosh.

HC244.L68 2004

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Preface

The CIS-7 Initiative was launched at a conference in London in February 2002, and endorsed by ministers from the CIS-7 and donor countries in Washington in April, with the objective of promoting poverty reduction, economic growth, and debt sustainability among the low-income countries of the Commonwealth of Independent States (CIS)—Armenia, Azerbaijan, Georgia, the Kyrgyz Republic, Moldova, Tajikistan, and Uzbekistan. The Initiative was supported by the Asian Development Bank, the European Bank for Reconstruction and Development, the International Monetary Fund, and the World Bank. It aimed to draw greater international attention to the development challenges faced by the CIS-7 Governments of the CIS-7, the international financial institutions, and bilateral donors all agreed that, though much had been accomplished during the first decade of transition, the agenda for reform still remained substantial. Also, it was clear that although the countries differed in many respects they faced similar economic development challenges.

A follow-up conference—Low-Income Countries of the CIS: Progress and Challenges—was convened in Lucerne, Switzerland, January 20–22, 2003. The objective was to achieve an understanding of the remaining development agenda in the CIS-7 countries and the key policy measures that could be taken by the governments and donors to improve future prospects of the countries’ populations. It also provided an opportunity to broaden the debate by bringing together a larger and more diverse group of participants. Country delegations included officials from the key economic ministries and civil society, parliamentarians, academicians, and members of nongovernmental organizations (NGOs). In addition to the representatives of the international financial institutions, there were many participants from bilateral donors and international NGOs. Speakers, including those who presented papers at the conference, were not only staff from the international financial institutions but also academicians.

This volume is the record of the Lucerne conference. The first chapter provides a summary of the major findings and key themes emerging from the conference. The remaining papers highlight the presentations made at each session of the conference. Although space constraints made it difficult to include all 21 papers in this volume, all the conference papers have been posted on the Initiative’s website (www.cis7.org). The views expressed in this volume are those of individual authors and are not necessarily those of the institutions with which they are affiliated.

The conference and this volume are products of many persons in addition to the authors. Special thanks are extended to Johannes Linn (World Bank) and John Odling-Smee (IMF), who played key roles in launching and supporting the CIS-7 Initiative; to Cheryl Gray, Samuel Otoo, and Jakob von Weizsacker (all World Bank) and Paulo Neuhaus and David O. Robinson (both IMF) for organizing the conference; to the Swiss Government for its generous hospitality and support; and to the Dutch Government for its assistance. In addition to the editors, the authors are grateful to Gail Berre of the IMF External Relations Department for her assistance in the editing and production of this volume and also to Meta de Coquereaumont, Paul Dyer, Jeren Kabaeva, Paul Mathieu, and Bruce Ross-Larson for their invaluable assistance during the editing process.

Mohsin Khan

Director

Middle East and Central Asia Department

International Monetary Fund

Shigeo Katsu

Vice President

Europe and Central Asia Region

World Rank

Contents

  • Preface

    • Mohsin Khan and Shigeo Katsu

  • 1 Overview

    • Samuel Otoo, Sarosh Sattar, and Ekaterine Vashakmadze

  • 2 Debt Accumulation in the CIS-7 Countries: Bad Luck, Bad Policies, or Bad Advice?

    • Thomas Helbling, Ashoka Mody, and Ratna Sahay

  • 3 The International Community and the CIS-7 Countries

    • Philip R. Lane

  • 4 Structural Reform in the CIS-7 Countries

    • Richard Pomfret

  • 5 Public Expenditure in the CIS-7 Countries

    • Mary Betley

  • 6 Inequality and Poverty in the CIS-7 Countries, 1989–2002

    • Jane Falkingham

  • 7 Growth and Rural Poverty in the CIS-7 Countries: Case Studies of Georgia, the Kyrgyz Republic, and Moldova

    • Louise Cord, Ramon Lopez, Monika Huppi, and Oscar Melo

  • 8 Political Obstacles to Economic Reform in Uzbekistan, the Kyrgyz Republic, and Tajikistan: Strategies for Moving Ahead

    • Pauline Jones Luong

  • 9 Economic Development and Private Sector Growth in the CIS-7 Countries: Challenges and Policy Implications

    • Nancy Vandycke

  • 10 The Integration of Low-Income CIS-7 Countries into the World Trading System

    • Constantine Michalopoulos

  • 11 Low Pressure, High Tension: The Energy-Water Nexus in the CIS-7 Countries

    • David Kennedy, Samuel Fankhauser, and Martin Raiser

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  • Global Environment Facility, 1998, “Aral Sea Basin Program. Water and Environmental Project,” GEF Project Document (Washington: Global Environment Facility).

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  • Gray, Dale R, 1998, “Evaluation of Taxes and Revenues from the Energy Sector in the Baltics, Russia and Other Former Soviet Union Countries,” IMF Working Paper 88/34 (Washington: International Monetary Fund).

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  • International Monetary Fund, 2002, “Cross-Border Issues in Energy Trade,” European II Department, March 2002, mimeo (Washington: International Monetary Fund).

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  • Kennedy, David, Samuel Fankhauser, and Martin Raiser, 2003, “Low Pressure, High Tension: 'The Energy-Water Nexus in the CIS-7 Countries,” paper presented at the Lucerne Conference on the CIS-7 Initiative, Lucerne, Switzerland, January 2003 (available at www.cis7.org).

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  • Micklin, P., 2001, “Managing Water in Central Asia,” Central Asian and Caucasian Prospects, paper presented at Chatham House, January 2000.

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  • Sharma, Raghuveer, Anil Markhandya, Masood Ahmad, and Mara Iskakov, 2003, “Central Asia Water and Energy Nexus Cooperation in the Syr Daria Basin,” An Analytical Basis, Draft (Washington: World Bank).

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